Average hours worked: the latest progress in hours worked in the region
has been +1.0%, in other words high, in the top range of 10-year observations
has been volatile, going up (by 0.7%) in the quarter and down (by -0.3%) last month
INDICATE MORE/LESS PRODUCTIVITY
Hours worked are not only a useful measure of productivity in the region, but also - crossed with wages (see chart on the right) - can suggest if there are inflationary pressures emerging in US from the job market. More insights in the right tab.
IntroWorking hours statistics are used to analyze labor market trends and productivity. Also, when crossed with wage changes, they can help us understand if inflationary pressures are emerging.
Wages, productivity and inflationWages represent a significant part of household income and therefore affect consumption and saving decisions. Let's remember that more consumption drives prices higher (and viceversa). Moreover, wages represent an input cost to companies: higher wages means higher business costs and ultimately higher sale prices. But what about hours worked?
Productivity in the equationHigher productivity, measured here as more hours worked per each worker, means that companies can produce more with the same number of workers and same total wages. Even if wages rise, higher productivity can help keep the overall cost per output unit in check, and thus limit price chages at the final point of sale.
Inflation implicationsThe chart above shows productivity changes over quarterly periods. If productivity goes up, wage increases are unlikely to drive inflation up (wage decreases will be disinflationary). If productivity goes down, wage increases may drive inflation up in the upcoming months.
Market consequencesThis page, connecting hours worked and wages, is useful to monitor one of the possible inflation drivers that may cause inflation pressures. Inflation will be the ultimate output investors have to deal with. Higher inflation is: · usually good for stocks (especially sectors such as energy, banks, utilities) up to a historical limit of 5/6% price growth YoY (above that, inflation will kill the stock market, as consumption will fade in normally functioning economies) · usually bad for bonds, as yields tend to rise (prices fall) on the expectation of rate hikes by central banks; it is normally suggested to reduce bond duration or switch to FRNs at times of higher inflation · usually good for commodities, or real assets
Viceversa, bonds like lower inflation, while the effects are mixed on stocks and commodities (with their prices mainly depending on other factors)
US Wage growth
US wage growth
an influencing factor of labor supply & demand, and inflation
what is the latest trend in hourly wage growth?
Latest available data: 28-02-2026
Wage growth in US (YoY):
is at 3.8397328881469193% ADD ONE DECIMAL, which is quite high, in the upper range of 10-year observations
has been volatile, going down (by -0.1%) in the quarter and up (by 0.1%) last month
Link with hours worked:
Hourly wages are growing alongisde more hours worked (which should instead mechanically push hourly wages down): it means that higher wages are causing a build-up in inflation pressures at the moment
To better understand the link between wages and hours worked, a measure of productivity, check the left tab.
IntroIn economics, wages are the monetary compensation paid by an employer to an employee for their labor. They are typically based on time worked (hourly, daily, etc.) or output produced (piece-rate). Wages are a crucial factor in labor markets, influencing both supply and demand for labor.
Wages, productivity and inflationWages represent a significant part of household income and therefore affect consumption and saving decisions. Let's remember that more consumption drives prices higher (and viceversa). Moreover, wages represent an input cost to companies: higher wages means higher business costs and ultimately higher sale prices.
Productivity in the equationHigher productivity, measured here as more hours worked per each worker, means that companies can produce more with the same number of workers and same total wages. Even if wages rise, higher productivity can help keep the overall cost per output unit in check, and thus limit price chages at the final point of sale.
Inflation implicationsThe chart above shows change in wages over quarterly periods. If wages increase, we need to check what has been the progress in hours worked (left chart): with a productivity increase higher wages would be unlikely to drive inflation up, but higher wages and lower productivity would be an inflationary scenario. In parallel, lower wages with lower productivity would not be a cause of disinflation, but lower wages with higher productivity would be.
Market consequencesThis page, connecting hours worked and wages, is useful to monitor one of the possible inflation drivers that may cause inflation pressures. Inflation will be the ultimate output investors have to deal with. Higher inflation is: · usually good for stocks (especially sectors such as energy, banks, utilities) up to a historical limit of 5/6% price growth YoY (above that, inflation will kill the stock market, as consumption will fade in normally functioning economies) · usually bad for bonds, as yields tend to rise (prices fall) on the expectation of rate hikes by central banks; it is normally suggested to reduce bond duration or switch to FRNs at times of higher inflation · usually good for commodities, or real assets
Viceversa, bonds like lower inflation, while the effects are mixed on stocks and commodities (with their prices mainly depending on other factors)